284. Capital Goods and Equal Money Capitalism

 

Continuing from:

283. Private Property and Equal Money Capitalism

 

Capitalism is an economic system that is based on private ownership of capital goods and the means of production, and the creation of goods and services for profit.Elements central to capitalism include capital accumulation, competitive markets, and a price system.

source: http://en.wikipedia.org/wiki/Capitalism

 

For context on redefining capitalism, read: Day 180: The Word ‘Capitalism’ in ‘Equal Money Capitalism Redefined

 

Capital Goods and Means of Production

A capital good, or simply capital in economics, is a manufactured means of production.Capital goods are acquired by a society by saving wealth which can be invested in the means of production.

Capital goods include factories, machinery, tools, equipment, and various buildings which are used to produce other products for consumption. Capital goods, then, are products which are not produced for immediate consumption; rather, they are objects that are used to produce other goods and services. These types of goods are important economic factors because they are the key to developing a positive return from manufacturing other products and commodities.

- Wikipedia http://en.wikipedia.org/wiki/Capital_good

 

 

Problem:

  •  Those who own the means of production/ capital goods,  own the entire production and as such, own the right to get the profit from the wholesale of it. This leads to:
    • Monopolization of wealth: the already wealthy get wealthier without distributing such growth/wealth equally to all people involved in the process of producing the final goods/ service
    • Hierarchy/ Inequality : those that own the means of production, own the rights to manage profit – this leaves people involved as human capital/labor force out of the picture of obtaining equal distribution.

 

  • Loans and Debt: machinery/ tools and means of production are only available to those that have enough money to pay for them – either through pre-existent wealth/capital or loans. This is though not accessible for everyone since any form of credit requires a backup that banks assess if one is eligible for such loan. Let’s say you are a farmer that requires a tractor and irrigation systems. If the farmer has no money to pay for such machinery, he will require a loan from the bank which means already he will have to pay the necessary interest that this process involves. The problem is that when such debt is insoluble, not only does he get all his machinery held by the bank, but he also now owes the interest for it, which leads to further debt. Some others might not get the credit at all and as such, no consideration to Life exists, because all that is being taken care of is Money in itself, not the necessity of the production of such crops that this farmer was regularly producing, which leads to a lack of production due to this ‘deficit’ that is not able to be covered by those that have the knowledge/time/space to produce, like farmers in this case.

 

  • Opportunistic Rubbish Production: machinery that is created to generate products that are certainly Not Indispensable  for human life and consumption is sold as opportunistic ways to capitalize wealth = buying such machinery to generate profit from selling cheap goods that come out of such production. An example of this can be all the plastic stuff like ornaments, a wide variety of plastic toys and personal care stuff that may work for a while, but eventually break, because the entire design and production is meant to sell cheap, generating a quick buck for those that own the factory/machines and all other means of production, but have no relevance nor real contribution to bettering life on Earth.

 

  • The rich get richer, the poor get poorer. People begin with small business that leads them to generate enough profit to buy machinery to start producing their own goods to sell. The profit generated from such production lead them to buy more equipment/ machinery to expand to other areas of production and as such, companies that produce a wide range of products have the same owners which implies a monopolization of wealth. In México this is ubiquitous when considering that most of the infrastructure for telecommunication is owned by one man that is currently among the richest man on the world. This leads to obvious monopolization of wealth wherein one man generates profit every time any single antenna or satellite is being used for communication purposes – of course, this leads to further expansion of this same man in other sectors like banking, infrastructure and construction, industry and commerce which includes restaurants, clothing stores, music shops and supermarkets which means, such investment is multiplied with no restriction. This is again what leads to monopolies and the few corporations that expand beyond their area of influence- which should be at a community level- and expands throughout the world with and by the use of the same process of capitalizing goods. Every person working for this corporation is Not benefitted from such expansion.

 

  • Pondering means of production over Human Capital and Resources: there is no consideration toward the living-factors that make such machinery be profitable. This means that what matters in the acquisition of the means of production is ‘how fast will I recover my investment and how fast will I be multiplying profit’? In many occasions, the production I thus ruled by the machinery without any regard toward the person that will be operating such machines which in conjunction to the desperate need to make the most profit in the least time, leads to slave labor and absolute abuse of natural resources to produce the most good in the shortest amount of time. This means that the right of ownership to the means of production is not in function to a considerate consumption and labor that is sustainable and safe to work with, which is another example of how it is currently another money over life inequality.

 

 

Solution:

  • Capital as Life
    At the moment – capital is referred to as intermediary goods – such as machinery and warehouses. Within Equal Money Capitalism – capital will refer to Life and include resources and people. Therefore – to value capital, means to value Life – and thus, all capital and all Life should be valued equally. For this – full employment is again a necessity. 

 

  • Equal Profit Share
    Each contributor to a product will receive an Equal Share of the Profits. Herein, it is irrelevant how much time someone spent in contributing to the production of the good – what is relevant is the end product and whether the product would exist without the various contributors.

Economist’s Journey to Life Day 162: EQUAL MONEY CAPITALISM – The Way Forward

 

  • No differentiation between capital goods and workforce and resources since All parts and means of production are equally important within the production and generation of that which is necessary to live.

 

  • Machinery/tools/equipment can be provided by the government upon analyzing the intended production and approving it as necessary/convenient and of benefit to the community. 

 

  • Well-being based production: once that profit is no longer a means to expand a corporate-empire but benefit people, the ever-expansive abilities of only a few will be halted and production will cease to exist as a means for profit only and instead, be redefined as a means to generate well being.

 

  • Ending Monopolies means creating Real Equal Opportunities for all
    • With EMC, we are moving away from monopolies, where a select amount of big corporations has control over particular products. Companies will be far more regional and community based as companies will exist from a point of responsibility towards their particular community. Within EMC, providing goods and services is not an opportunity to ‘hit it big’ in the world – it is how one contributes to society to make Life on Earth a worthwhile experience for everyone. When companies are locally based and operational, transport costs will of course also be cut down, which will reduce pressure on the environment. -Day 170: Companies and Industries in EMC

 

Rewards and Benefits:

    • -“We’ve come to believe that our value is dependent on how much we have – because that is how ‘the world’, or rather, the economic system, has treated us: if you don’t have anything, then you’re not considered, you’re not a part of the economy, you’re not supported. And, obviously, if you’re not considered, included or supported, it means you’re not valued. If everyone were valued by the current economic system, then the system would consider, support and include everyone – but this is not the case.” Day 180: The Word ‘Capitalism’ in ‘Equal Money Capitalism’

 

  • People that could not afford newer and better means of production to sustain their economic activity – such as the farmer in the problem section – will have the ability to now be supported to acquire them if their intent is to produce goods that are necessary and/or of benefit/convenience for human consumption and bettering the living conditions.

 

  • Everyone will win: won’t matter if you are the one that directs the industry in finance, administration, working directly with the machinery to produce goods, drive the truck that distributes such goods or the retailer agent, you get equal-profit share.

 

  • Your work has Equal Meaning and Value: Equal distribution of profit generates a sense of well being within every single being involved in a certain production/ manufacturing activity, because there will be no imposition of the machines being owned by some and reducing human labor to a mere workforce to make profit, but instead, human labor will be considered as important as the final product which will be meant to produce well being and bettering of living conditions.
  • No more futile investments: risking investments on means of production that have no assured profit, since all production will be intended to generate a necessary good or provide certain service for the community, this means assured market and no energy/money waste.
  • The real value of your life is measured by the life you are able to benefit by your action, words and deed, your real means of production.

  • Visit the Group Capitalism vs. Equal Money group on Facebook. 
  • Read the Equal Money Wiki 
  • Read Economist’s Journey to Life

 

 

Further Support:

 

Blogs:

About Marlen

I'm a human being that has decided to live by the principle of Life in Equality and place myself as a point of support for everyone that's willing to birth themselves as Life in this world. View all posts by Marlen

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